14 Nov 2012

Dunedin Council property purchase to be investigated

3:45 pm on 14 November 2012

The Audit Office is to investigate a decision by Dunedin City Council to invest in a residential development near Queenstown.

The council bought a stake in a joint venture at Luggate, near Wanaka, and bought property at Jacks Point in Queenstown, through a council-owned company, for $14 million.

The council now estimates the value of its investment has fallen by more than $6 million.

Auditor-General Lyn Provost says she began the inquiry after a request by Mayor Dave Cull,.

The council decisions were made in 2008 and 2009 before Mr Cull was elected.